First of all, I would like to understand the technical front, tell us now we are approaching the September series and if you see enough good series in August what we see, 4% of good gain and then consecutive 11 days of winning for good. especially. How to approach the month of September now because what we see is for the month of September if you look at the seasonal data 6 out of 10 times the month of September has negative returns. But it has been a good month for the IT space. Do you have anything to say about this?
Rajesh Palviya: So, looking at the rollover data, it is on the positive side, a rollover of 77.50% for the August series, which is higher than the average of the last three months and six months. But in Bank Nifty, the rollover data is on the lower side. But look at the good structure, we believe that this is the 11th consecutive day where we see a positive flow, which clearly shows that there is sustained buying action has taken place in the market and the market has the confidence to move higher. So, looking at the technical structure, we believe that this momentum can go further. The way more markets participate in this upward movement, the big board also shows good strength and sectoral rotation also occurs in this upward movement. So, it clearly gives confidence that the rally can reach 25,400 to 25,500 type of zone during the continuation of this upward movement.
At this point, 25,000 has the main put base concentration. So, I need to follow the stop loss to 25,000, 25,100 to hold the long position and the rally can reach 24,400 to 24,500.
For this September series, we expect some for the September series for good is 24,800 on the downside and on the plus side 25,600, this will be some possible for good. For Bank Nifty, the immediate supply zone is placed around 51,500 which is a very important level to cross on the higher side.
If the Bank is very good passes 51,500, then we can see a short closing action in the Bank is good and then the rally can extend to 52,000 as well. Rollover data also shows some specific rollover actions. Deposits in the banking space give us some signs that there may be short covering actions in the coming weeks for the good Bank has been lined up and I think we can see a higher level. So, for Bank Nifty also, we have a bullish view, 51,000 is the stop loss to hold a long position. On the sector front, the rollover action is clearly shown in pharmaceuticals, metals, oil and gas. All these sectors show good traction in terms of rollover activity. So, we believe that buying support can continue from pharma, auto, metals, oil and gas and FMCG, all these places can continue to be bullish in the September series.
Don’t tell me now what you want from FII participation. Now, DII has given me durability, they have given me good support so far. But now, FII has also turned positive. If you look at the data, FIIs log in the future index at the beginning of the September series, which looks very promising, nearly 70%. Do you have anything to say about this? What sector do you think money is moving in?
Rajesh Palviya: So it is clear now, FIIs have become bullish and we are seeing positive data since last few days for FIIs and I think if the buying action continues if it continues then I can see higher levels for the market. I think the flow is going to come in pharma as well as in the IT sector, the way both sectors have progressed over the past few days and clearly, sustained buying action has taken place in the pharma as well as in the IT space.
So, I can see a good traction in the sector and I think as we discussed earlier also for largecap IT as well as for midcap IT, I think here we can see higher momentum. So, from IT largecap, I think TCS and Infosys can be seen for short to short term trading perspective. Both of these stocks look promising. And from midcap IT, we believe LTTS could be one stock that could see good traction. And another stock he likes is Birlasoft.
Both these stocks look bullish from the midcap IT space. Even from the pharma space, many stocks are currently moving higher. Lupine is the preferred option from the pharma space and we believe that we can see an upward momentum in Lupin, so one can see this stock also from the pharma space and the rally can reach 2350, 2400 kind of level for Lupin.
And another stock from the pharma space is Sun Pharma, that stock also looks promising. So, we are projecting a target to 1950 for Sun Pharma, so we can buy and accumulate this stock also for a short-term trading perspective.
Tell me now, what would be your specific recommendations, even though you’ve talked about a lot of stocks from IT as well as pharma, any specific trades that you’ll be looking at this week for the audience?
Rajesh Palviya: So, the first stock from the pharma space is Ajanta Pharma, the midcap pharma space and the stock can give a breakout from the pole and flag formation on the daily chart and the way the stock has given a breakout with the volume action, we believe here we can see more run up to 3360, so one can buy Ajanta Pharma with a stop loss of 3185. Another stock from the agrochemical board is UPL. There was a long underperformance in the stock price, but now the way the stock has formed a base and if we analyze it on the weekly chart every month, the stock managed to break out and now the stock is holding above all the near-term, short-term. moving average. We believe that UPL can exceed its gain. We project the target to 620 with a stop loss of 592.
And the third stock from the banking space and largecap private bank is ICICI Bank looks promising. The way the stock has risen in the last few weeks and now the stock is comfortably holding the 1200 mark, we believe that this is the third consecutive week where the stock has formed a higher high-low formation which clearly indicates that continued buying action has taken place in this stock.
So, we believe that ICICI can increase its gains and maybe the stock can try again to return to the high trajectory. We project the target to 1270 for ICICI Bank with a stop loss of 1205.
